Morning Najjaci31
Couple of comments re yr post.
Firstly, I think it is widely accepted that the Jan to Mar QTRLY cash flow / activities report would not have shown any Boost Revenue. This will appear in the next quarterly. In fact, this is the last quarter where we can assess the success of IQBuds in terms of market uptake and whether the product is gaining traction. The waters will become muddied next quarter with the introduction of Boost sales.
I think the lower manufacturing spend in the quarter is a result of the high closing inventory @ 31 Dec. Reported as AUD 2.3 m, this implying the Company undersold in the 4th Qtr. Fortuitous in two respects, that being lower outflow effectively boosting the cash position and cleared the way for Boost production in Q1.
Your third point about 43% and 55% growth rates (on-line and B&M) is irrelevant to Q1 Activities report. This is growth rates for H2’17 vs H1’17. Through memory, the base upon which the growth was calculated excluded the crowd funding sales. So A low base effectively diluting the growth story (the increase in the number of units sold), particularly when one considers all of what was announced in terms of retail expansion since May 2017 and of course, the much spoken about Xmas spend period.
If you accept this, then you will agree that your extrapolations for future growth from IQBuds are questionable.
Before commenting on Boost, I consider that there has been minimal traction on IQBud sales particularly when one considers the expansion of the B&M profile, 46 stores to 600 stores to 1500 stores. 80 countries, Amazon, Best Buys, Qantas, USA, Europe, Canada, Middle East etc, etc....quarterly sales between 3400 and 4000 units depending on yr w/avg selling price per unit sold assumption (net of returns). Still believe the Return Policy has been a factor. Interestingly, sent in a question on this at the recent webinar. No response. I guess a bit prickly to answer.
Your comments on the potential of Boost is IMO the biggest reason to maintain a holding of NUH. Undisputed potential on a global scale, but at some stage in the future, Nuheara will need to demonstrate market uptake and traction. As an investor, I would have felt far more confident if their first product (IQBuds) was flying off the shelves. Unfortunately, no evidence of that.
Let’s hope there is better connect between the story and Financial performance on Boost and Live.
DYOR
Rokewa
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